Taking Risks in Life – Here’s What You Should Know

There are 3 different types of people in the world when it comes to taking risks.

Type
one: people that are risk averse.

Just the thought of taking any risks, makes
them ‘uncomfortable.’ “I don’t want to do it.” They like to play it
safe.

Type
two: people that are risk tolerant.

Meaning that they can tolerate taking
risks, it’s okay to take risks every now and then, and they are quite
comfortable with it.

Type
three: people that are risk seekers.

They’re actively seeking out risks and are
the ones that are often doing crazy stunts or just on the kick for risk and
adrenaline.

I’m not as crazy as a risk seeker. I want
to say that I’m risk tolerant, but I wasn’t always this way.

I
was raised risk averse.

My dad, for example, went to college. After college, he started a job at a steel factory in Germany, Krupp Stahl, and he kept the same job for 35 years until he retired. So you could say my dad was risk averse, not taking any risks in life.

I went on to do the same thing. In the
beginning I wen to college, then got a job working for IBM, climbing the
corporate ladder.

Eventually, I realized something really important.

Being risk averse and not taking any risks means that if there’s no risk, there’s no reward.

In life, you have to take risks if you want to achieve something extraordinary.

I don’t know any millionaire or billionaire who didn’t take risks at some point in their life.

The
important thing is you want to control the risk as much as you can.

In 2002 when I was 33, I left IBM and moved all the way from Germany to Austin, TX to become a full-time trader. Now was that risky? Yeah! Absolutely!

I left a very comfortable 6-figure job to become a trader – something I knew very little about at this point, but I knew I wanted to make a difference in my life.

I didn’t want to be a corporate drone anymore, so I decided to take the risk.

In the beginning it was very challenging, but it did pay out over time.

I mean, these days I’m a multimillionaire and enjoying my life. I no longer have a job.

If you say that I’m “working”
tomorrow when showing others how I trade, that’s not work, that’s fun! I’m doing
it because I want to do it. Taking risks is important.

I was trading and at some point and I
thought, “You know what? I should probably learn something about real
estate investing.” And so, I did.

I bought my first house and I made a lot of
mistakes, which is important.

When
taking risks be prepared to make mistakes, learn from these mistakes, and then
avoid them going forward.

Think about it financially. If you don’t
want to take any risks… if you want to park your money somewhere where it’s safe
or just earn an interest rate, how much are you making?

A percent? A percent and a quarter? Maybe
even less?

See, when you don’t take any risks, there
won’t be any reward.

On the other hand, is it possible to make
money in the stock market? I believe it is. If you want to make 60%, 70%, 80%,
then you have to take risks.

What
type of risk taker are you?

Are you risk averse? Wanting to play it
safe.

Are you risk tolerant? Okay with, and even
comfortable taking risks.

Are you a risk seeker? Where you would
wrestle with lions, jump from high buildings, skydive and so on?

For me personally, I am risk tolerant and
I’m very comfortable. This allowed me to have the lifestyle I’m living now.

Recap

I believe taking risks in life
is very important.

You have to be comfortable
taking risks.

When possible, control the
risks as much as you can.

You won’t be able to completely
avoid the risk.

If you want to learn more about trading and
taking risks, there are plenty of articles here on the blog, as well as videos on
my Facebook page and YouTube Channel. Depending where you read or watch, you’ll
learn more about the way I trade.

If you want us show you exactly what I do, you can join us at one of our upcoming bootcamps in your city.

Trading Futures, options on futures and retail off-exchange foreign currency transactions involves substantial risk of loss and is not suitable for all investors. You should carefully consider whether trading is suitable for you in light of your circumstances, knowledge, and financial resources. You may lose all or more of your initial investment. The lower the day trade margin, the higher the leverage and riskier the trade. Leverage can work for you as well as against you; it magnifies gains as well as losses. Past performance is not necessarily indicative of future results.